I believe you, but how do the sums work? In my jurisdiction - a notoriously right-wing part of Canada - the staff:kid ratio is 1:4 for little guys, 6 for toddlers, and 8 for 4 years +. Call it 6 average. A group of 6 kids will bring in $960/week. At a minimum wage of $15/hour, a week's wages is $600 - call it $800 for the employer after expenses. That leaves roughly $160 excess funds per cohort.

Say there are 5 cohorts in a daycare - 40 kids. $800 excess funds per week or ~$3500 per month. Out of that comes rent, insurance, supplies, cleaning, utilities, and probably property taxes and maintenance on a typical triple-net lease. Seems like a losing proposition.